2007 IT Salary and Skills Report

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1 Expert Reference Series 2007 IT Salary and Skills Report What Impacts Salaries?

2 2007 IT Salary and Skills Report This Global Knowledge salary survey was conducted in the fourth quarter of 2006 and yielded 1,607 valid responses from individuals in customer and partner databases and from subscribers to its company newsletters. Evaluating IT salaries can be tricky. Push down one factor and another one pops up. The technologies, job responsibilities, and the job markets themselves are fluid, making it difficult to pin down specific salary factors. While there s no magic number that ties to a particular job title or certification, your years of experience, skill level, and area of specialization certainly play roles. The good news is that salaries are rising. So whatever your X factor, be it your skill level, your specialization, or the fact that you recently added more letters after your name, you can count on one fact: the rate at which your salary increases is proportional to the extent that you take personal responsibility for your continued education. Based on our research, other salary surveys, and industry trends, the key factors to consider are: Generally speaking, increases in IT salaries follow economic conditions, including the rate of inflation, and are not necessarily increasing faster than those for other occupations. Recent IT salary increases are hovering above the inflation rate, spawning a modest, net gain. Economics aside, an increase in IT salaries is linked to what employers value, which can be a combination of skill level, certification, years of experience, and the broadening of education to include management skills. There is correlation between certification and salary, because those who are certified also have the skills. Our survey reveals that training is valued more than certification both by employers and IT professionals. To employers, training is the most cost-effective retention strategy. It also results in increased productivity and profit. To employees, support for training and career development - next to salary - is the most likely reason to stay with or leave an employer. Who s Making the Money? With respect to primary responsibility, it is no surprise that Executive Management (representing 2.7% of all respondents) is at the top of the list (see figure 1). Nearly one-quarter of those surveyed report having responsibility in network or systems administration and analysis. Eleven percent of the respondents hold Project Management positions and another 11% are Senior IT Management professionals. As a group, those with project management certifications have the highest average salary (see figure 2). They also have a lot of experience more than half report having at least 15 years. Figure 1 Average Salary By Job Function Executive Management $97,616 Sr IT Management $91,185 Consultant $84,627 Project Manager $83,668 Computer Security Specialists $82,237 Non-IT Management $81,522 Computer Software Engineers $78,405 Engineer - other $77,527 Database Administrator/Analyst $74,623 Programmer Analyst $72,344 Network/Systems Analysts $72,199 Analyst - other $63,833 Web/Internet Developers $63,793 Network/Systems Administrators $61,477 Computer Specialists - other $58,103 Admin Support $54,205 Computer Support Specialists $51,933 Other not listed $66,897 Figure 2 Average Salary By Major Factor Project management $85,037 Security $84, or more years of experience $83,882 Four-year degree or higher $73,583 Average with at least one certification $71,573 Average of all respondents $71,556 Average with no certifications $71,527 Market forces including geography, specialization, and industry are also significant factors. The skills with the highest demand will extract a higher salary. Currently, security responsibilities and certifications top the list IT Salary and Skills Report Global Knowledge Training LLC. All rights reserved. 2

3 Of the top ten in this survey, three of the highest salaries were for individuals in security and Voice over IP. Respondents holding Cisco certifications report an average salary of $73,264, about 2.4% above those with no certifications. Those holding Microsoft (except MCSD and MCTS) and CompTIA certifications reported earnings lower than those without certification of any kind. However, Microsoft and CompTIA have the largest proportion of entry-level certifications so the results are biased downward by the limited years of experience. In addition to skill sets, the impact of the demand is easily seen in how salaries break down by industry (see figure 3). Age and Experience Count! It is no surprise that knowledge gained through experience and formal education goes a long way. Respondents with a four-year degree report an average salary 13% higher than those with only some college experience. As IT responsibilities have become more integrated into department- and corporate-wide business strategies and processes, specific technical skills are less important than the more management-focused communication and planning skills. In the long run, a broader educational or training background has a positive effect on salary growth. Salary Satisfaction Levels Overall, salaries remain competitive, but it is still an employer s market. However, when asked how satisfied are you with your base salary? the responses indicate an average satisfaction level of 3.1 out of 5, with 10.4% being very satisfied and 8.5% being very dissatisfied. IT professionals are fairly satisfied with their current base salary but not satisfied with the amount of their salary increases. In fact, nearly 23% of the respondents to this survey report that they are very dissatisfied with their last raise. Figure 3 Salary by Industry Government - Federal civilian $82,882 Defense Contractor/Aerospace $81,321 Government - Military/National Security $80,000 Insurance (all)/real Estate/Legal $79,596 IT/Tech/Comm - related services/consulting $78,446 Manufacturing - Consumer Goods $77,794 Pharmaceutical/Medical/Biotech $76,579 IT/Tech/Comm - related software development $76,180 Transportation/Public Utilities $76,080 Financial Services/Banking $75,981 Media/Print/Film/Music $75,250 IT/Tech/Comm - related hardware manufacturing $74,786 Professional Business/Management Services $73,362 Natural Resources - Mining/Oil/Gas $71,071 Retail/Wholesale (non-computer) $68,627 Communications (telco, cable, satellite) $67,435 Manufacturing - Industrial (non-computer) $67,169 Hospitality/Recreation $63,421 Natural Resources - Agriculture/Forestry $63,333 Construction/Architecture/Engineering $62,037 Government - State/Local $61,535 Education - public/private schools $57,544 Other $68,836 Figure 4 18% Salary Of All Respondents By Range 16% 15.3% 14% 12% 13.4% 13.9% 12.6% 10% 10% 9.3% 8% 8.3% 6% 6.1% 6.7% 4% 2% 2.5% 1.7% <$35k $35-45k $45-55k $55-65k $65-75k $75-85k $85-95k $95-105k $ k $ k $150k IT Salary and Skills Report Global Knowledge Training LLC. All rights reserved. 3

4 Within the past 12 months, 14.3% report a decrease in salary, 17.0% report no change, and 14.2% report less than a 3% increase. Of those who did receive an increase, the average is 4.9% (see figure 6), which is comfortably above the peak annual inflation rate of 4.3% that was reached in June At a current inflation rate of just under 2%, even a modest increase is significant compared to the previous lean years of IT salaries. It is good news that salaries are increasing, but it must be kept in perspective. The Bureau of Labor Statistics reports the wage index increased 3.3 percent between the third quarter of 2005 and the third quarter of More than half of IT staffers and two-thirds of IT managers expect bonuses according to the InformationWeek Research s National 2006 IT Salary Survey. Companies are responding with bonus programs based on individual performance or profit sharing; however, 37% of the respondents to our survey are not satisfied with their most recent bonus. In fact, nearly half of them didn t receive a bonus within the past year. Of those who did, the average payout was just under $4,000. What s Concerning IT Professionals? Since skills and experience go hand-in-hand with promotions and salary, it s not surprising that the number one concern of IT professionals surveyed was keeping up with skills (see figure 7). Although outsourcing was expressed as a concern, 81.6% of the respondents were not impacted at all and only 5.4% lost employment. Nearly 6% were retrained by their current employer. Outsourcing as a concern should stay on the radar, however. Irvine, Californiabased Consumer Economics reported in August 2006 that IT outsourcing in general is not expected to slow down any time soon. Of the categories tracked, software development is the most common outsourced function, with Help Desk as the function most retained internally. Figure 5 Profile of Respondents Base Salary $71,556 Received a raise 68.7% Raise/Increase Amount 4.9% Received a bonus 52.1% Bonus Amount $3,963 Age 41.6 Years in IT 10.7 Male vs. Female 3:1 Education Figure % or More % 6% + 7-8% 4.3% 8.3% + 5-6% 9% + 3-4% + 1-2% 14.2% No Change 74.2% have at least a 4-year degree Change in Base Salary in the Past 12 Months 17% 26.9% 1-4% 10.7% 5% or More 3.6% Figure 7 Keeping Up With Skills 5% Concern Regarding Issues (Respondents reporting Concerned or Very Concerned ) 10% 15% 20% 25% 30% 67.39% IT Compensation 57.19% IT Job Market 48.79% Job Security 42.07% Outsourcing 38.95% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2007 IT Salary and Skills Report Global Knowledge Training LLC. All rights reserved. 4

5 Impact of Certification More than 80% of the respondents hold a certification. A Microsoft certification is the most common vendor certification followed by the vendor-neutral CompTIA (see figure 8). Half of the respondents earned their most recent certification in something other than the primary vendor or industry association certifications. As the technologies, skill sets, and opportunities change, the biggest challenge in certification might be choosing which ones to maintain and which ones to pursue. There are now more than 200 certification programs with more than 850 certifications according to a recent report by Ed Tittel published by Certification Magazine (November, 2006). Of the respondents, 41% earned their most recent certification more than two years ago, yet only 12% plan on recertifying and less than half plan on gaining a new certification. Security-, VoIP-, and project management-related certifications top the lists in both salary and interest (see figure 9). Microsoft is moving to a broader experiencedbased certification; Cisco is expanding the specialties in CCIE; and Red Hat certifications continue to gain ground as open source technologies expand to a wider installation base. Figure 9 Highest Paying Certifications (ISC) 2 SSCP (Systems Security Certified Pracitioner) $110,000 Voice over IP Expert $100,714 CCIE Routing & Switching $95,417 NNCDS (Nortel Networks Certified Design Specialist) $95,000 ITIL Managers Certificate $94,000 (ISC) 2 CISSP (Certified Information Systems Security Professional) $91,939 Security Management Expert $90,556 PMI PMP (Project Management Professional) $90,470 ITIL Practioners Certificate $87,917 CCVP (Cisco Certified Voice Professional) $87,500 Cisco Advanced Wireless LAN Design Specialist $87,500 CWNA (Certified Wireless Network Administrator) $86,786 American Management Association Certificate in Project Management $84,545 Figure 8 Certifications Held By Respondents Other 19% Cisco 10.6% Cisco Advanced Wireless LAN Field Specialist $84,000 CCDP (Cisco Certified Design Professional) $83,750 Cisco IP Telephony Design Specialist $83,750 Check Point CCSA (Check Point Certified Security Administrator) $80,625 Security 6.4% Networking/ Telecommunications 11.6% Microsoft 26% CCNP (Cisco Certified Network Professional) $79,755 NNCSE (Nortel Networks Certified Support Expert) $79,286 ITIL Foundations Certificate $79,167 CCDA (Cisco Certified Design Associate) $78,047 MCSD (Microsoft Certified Solutions Developer) $77,125 Red Hat 0.9% Project Management 11.9% CompTIA 13.6% American Management Association Certificate - Business Mnagement for IT and Technical Professionals $76,250 NNCSS (Nortel Networks Certified Support Specialist) $75,833 Check Point CCSE (Check Point Certified Security Expert) $75,750 Voice over IP Specialist $75,147 CCIP (Cisco Certified Internetwork Professional) $74,000 CTP (Convergence Technologies Professional) $72,857 CCSP (Cisco Certified Security Professional) $72,727 RHCT (Red Hat Certified Technician) $72,500 MCTS (Microsoft Certified Technology Specialist) $72,258 Cisco Firewall Specialist $72, IT Salary and Skills Report Global Knowledge Training LLC. All rights reserved. 5

6 IT Professionals Believe In Training Figure 10 Professionals in the IT sector are well trained. They d have to be to keep up their skills, gain certifications, and know what they re doing. In fact, 62% percent of the respondents had attended training within the past nine months with fewer than 5% attending as a requirement by an employer. Further, nearly 20% paid for the training themselves. Stay current with skills and knowledge As part of my personal career plan Why Take Training? 28.62% 33.23% Most respondents plan to take training because of concern over keeping up their skills (see figure 10). When asked specifically to rate their level of concern about maintaining skills, 68% were concerned or very concerned. The level of concern increases with years of experience. Only 23% of those with less than two years experience are very concerned compared to 30% of those with more than fifteen years of experience. Compare our figures to a recent report from the U.S. Department of Education where 95% of respondents who reported having taken work-related courses did so primarily to maintain or improve skills that they already possessed. Only 10% also mentioned changing jobs as a factor. Additional work-related training to gain a raise or promotion as a factor was cited by only 19% of the respondents. Gaining a certification, the benchmark standard for testing knowledge and skills, is often not the prime factor in a decision to seek training. Undertaking training to keep up with skills can indeed prepare one for earning a professional certification that could increase compensation. Salary is important, but professionals also value support for training. Respondents who stated they are strongly dissatisfied with training support are nearly as likely to change jobs within the next 12 months as those dissatisfied with overall compensation. The message to employers, then, might be that your IT staff places a high value on training and may prefer to work for an employer who follows suit (see figures 11-12). Earn certification for increased credibility Increase efficiency/ knowledge for current project Increase compensation or change jobs with employer Fulfill a requirement by current employer Change employers Figure 11 Other 5.29% 4.85% 1.68% 1.37% 5% 10.33% 14.62% 10% 15% 20% 25% 30% 35% Employer Paid Training Offered Per Year 6-10 days 21.6% days 9.2% None 31.2% Career Satisfaction and the Job Outlook In spite of the challenges and the fast pace, 67% of respondents are satisfied or very satisfied with their career choice in IT. Experience brings a broader perspective of the job with a greater sense of personal achievement. Salary is important, but employers should be aware of other motivators. In the CompTIA study, 58% of IT workers are looking for new challenges and two-thirds want more opportunities for career development. John Venator, president and CEO of CompTIA, noted in a December 2006 article in eweek that hiring plans for 2007 look strong in finance, business services, and professional services. Adding to the positive IT career outlook is the statistic from the U.S. Department of Labor which estimates that between 2004 and 2014, 1.49 million new computer and IT-related job openings will be created. Among the top 10 Best Jobs in America ranked in 2006 by Money and Salary.com for market growth, compensation, and professional environment are Software Engineer (number one) and Computer IT Analyst (number seven). Figure 12 Respondent paid for all expenses - no reimbursement 19% Tuition reimbursement through employer 5% Employer paid tuition - respondent paid all other expenses 6% 1-5 days 38% Who Paid for Training? Other 4% Training paid with vendor credits 2% Employer paid all expenses 64% 2007 IT Salary and Skills Report Global Knowledge Training LLC. All rights reserved. 6

7 About the Author The survey project was managed in-house by the Market Research department of Global Knowledge under the direction of Michael Chevalier, Manager of Market Research. He is a veteran of more than 20 years of experience in sales, economics, and marketing research. Survey Methodology This Global Knowledge salary survey was conducted via the Internet over an eight-week period from October 6 to December 1, invitations were sent to individuals in the customer database, to subscribers of the company newsletters, and to partner databases. Links were also provided on the main company web site. For interpretation, the margin of error is less than +/- 2.5% at the 95% confidence interval. Although the entire survey is statistically significant and holds true in categories, specific certification and job function salaries reflect a much smaller number of respondents. This report illustrates trends and relationships within the IT industry. It is not designed nor intended to be a compensation study for the determination of specific salaries IT Salary and Skills Report Global Knowledge Training LLC. All rights reserved. 7

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